facebookHello! Anyone can guide me on purchasing SG dividend stocks? Is it more worth it to start now as a graduating uni student to invest monthly on these stocks to generate passive income? - Seedly

Anonymous

20 Jan 2021

∙

Stocks

Hello! Anyone can guide me on purchasing SG dividend stocks? Is it more worth it to start now as a graduating uni student to invest monthly on these stocks to generate passive income?

Currently working part-time job which generates about 1k a month and my expenses are quite low + I already have some savings to fall back on & I do not have student loan

Discussion (1)

What are your thoughts?

Learn how to style your text

thefrugalstudent

20 Jan 2021

Founder at thefrugalstudent.com

Hi Anon,

Good job on looking to start investing and working while studying - it's tough!

Here are my thoughts:

As you may have noticed many people saying, dividend investing is a strategy that is most effective when you have a large enough capital. This is because dividend payouts are small (<=5%) and if you only invest a small amount, the passive income you generate will not be a lot.

This is why many young people choose to focus on growth first, ie by investing in low cost ETFs that are diversified, in order to grow their capital by compound interest, and then start dividend investing when they have larger capital at their disposal.

Nonetheless, there's nothing wrong with choosing to invest in dividend stocks. I believe that investing as early as you can is always the best, because time will be on your side.

All you need is a brokerage account to get started - Tiger Brokers is a popular choice due to its low fees.

All the best!

Regards,

thefrugalstudent

Write your thoughts